PB Fintech Expands Paisabazaar, Boosts Health Division
PB Fintech, the parent company of insurance marketplace Policybazaar, is diversifying its credit arm Paisabazaar into payments and savings products. The company also provided an update on its health business, PB Health, and commented on potential changes to insurance commission structures.
PB Fintech, which operates the insurance marketplace Policybazaar, announced strategic expansions during its Q1 FY27 earnings call. Its credit platform, Paisabazaar, is moving beyond lending to include mutual funds and plans to launch a daily systematic investment plan (SIP) platform. Paisabazaar is also expanding its fixed-income offerings, allowing investments in corporate bonds, government securities, and fixed deposits, having received approval to operate as an Online Bond Platform Provider.
The company's healthcare arm, PB Health, is targeting an annual run rate (ARR) of Rs 500 crore by March 2027 and aims to achieve breakeven. Following the acquisition of digital health platform Fitterfly, PB Health has grown its hospital network and plans to integrate 500-600 hospitals into its ecosystem. Some will operate under the PB Health brand, while others will support PB Care Plus insurance plans.
During the call, PB Fintech Group CEO Yashish Dahiya addressed potential changes to insurance commission models. He expressed skepticism about the feasibility of effort-based commissions, citing the extensive regulatory requirements and customer support obligations placed on brokers. Dahiya highlighted that PB Fintech's profit margins on premiums are narrow, typically 1-2%, and fall below 1% excluding interest income, making significant commission reductions challenging.
Paisabazaar's strategy for its savings products over the next 1-2 years will prioritize customer engagement and stickiness over immediate revenue generation. The platform has also obtained a stockbroking license and a payment aggregator license, signaling a broader ambition to offer integrated financial services.